The Central Bank agreed to negotiate the transfer of the action of the law on the Forex market

Moscow. November 18. The CBR is ready to negotiate a postponement of the action of the law about regulation in the Forex market for one year, as requested by the participants in this market, said the Chairman of the Bank of Russia Vladimir Chistyukhin told reporters on Wednesday.

“If such a bill would be prepared, if it will be supported by the state Duma and the government, we will take a neutral position that will not impede the transfer period,” he said, noting that the participants of the Forex market-services are asked of the regulator and the government to extend the transitional period for the entry into force of the law on the activities of the Forex dealers until the end of 2016.

The act entered into force on 1 October 2015, a number of its provisions come into force on 1 January 2016.

In accordance with the law on the Forex market, the company must obtain a license of the Central Bank of the Forex dealer and to engage in self-regulatory organization, which shall not be less than 10 participants. While the appeal for a license has filed only one company. If the Russian Forex dealers will not receive a license until January 1, 2016, they will have to cease operations. The maximum term of consideration of documents of the Central Bank within 60 days, the qualitative documents, the license can be issued earlier.

According to Chistochina, Forex dealers are reluctant to seek license because they are not satisfied with the norms of the adopted law. Market participants appealed to the Central Bank, the Ministry of Finance and to the deputies with a request to postpone the entry into force of the law on 1 January 2017.

Participants are not satisfied with the definition of Forex activity, which is written in the law, limiting “shoulder” at 1:50, and that their work will be exceptional and they will not be able to hedge their risks in other markets.

The Central Bank is ready to discuss a change of the law, but so far only ready for the postponement of the entry into force of its norms.

The Chairman of the Central Bank recalled the history of the regulation of Forex dealers. The company offered opaque vysokoriskovannuju service in which individuals began to lose large sums of money. “This business involves several hundred thousand citizens, their losses could run into billions of roubles,” he said.

Professional market players want to legalize this market, but how they wanted to work, did not coincide with the vision of the Central Bank and the government.

Currently the company is trying to appeal to that can provide services to a Forex broker abroad.

However Chistyukhin warned that under the Civil code, any applicable law have not been elected, and the latter elected by the applicable law of a foreign country, this can’t neutralize or to deny the civil and legal imperatives that exist in Russian legislation.

“We in the law today is set to a sufficiently serious protective mechanism for individuals by the shoulder 50, it is necessary to disclose the information to register the contract in the self-regulatory organization, before concluding a contract, to obtain information about what the risks are understood. In fact failure to follow these rules leads to the nullity of the transaction,” said Chistyukhin.

How it would work in practice – will show court practice.

“At the time when we had currency control regulations, many of our foreign counterparts have great respect for the Russian currency legislation, even if the applicable law did law in the UK”, – said the Chairman of the Central Bank.

For the last 2 years in the Central Bank received about 500 complaints against Forex dealers. Currently, according to expert estimates, in Russia employs more than 1 thousand Forex dealers, with 80% of the market is concentrated in 10 companies.